Market Updates

Note since the beginning of the year the S&P 500 has been in a channel marked by the two black horizontal lines that run across the chart. On June 2nd the S&P 500 broke above the top of the channel, which would be considered resistance, on high volume that was 216% above average volume, which is marked on the chart. The high volume on the breakout demonstrates that investors and traders were aware of the channel being broken and wanted to add to, or initiate positions.

June 11, 2023 One would think economic news would slow down after getting past last week’s debt limit deal that cut borrowing by $1.5 trillion. But this week we will be hearing more important economic numbers beginning on Tuesday. This week’s reports may have an...

Previously, in our August 2022 newsletter, I wrote about the descending Zig-Zag Pattern that the market has been in since January 2022. As you can see in the chart below, we are still in this descending channel. The red line on the chart has been resistance, the green line marks support and the blue line marks the center of the channel. Take a close look at the yellow reversal line on the chart. This is the first time in over a year that the market has turned up and not broken the blue mid-line. This upturn has only been four days and I can’t predict if we will break above the red resistance line, but it is the first time in a year that this has looked slightly promising. Are traders becoming optimistic?

December 10, 2022 In last month’s newsletter I wrote “So finally, after 10 months of declines, we may get a Santa Clause rally after all.” As you can see on the chart of the S&P 500 below we have had a small recent rally. The issue is that overall the market has...

November 11, 2022 I delayed the market newsletter because over the past two weeks news stories kept the markets rolling. To begin, once again the Federal Open Market Committee (FOMC) raised interest rates by another ¾% on November 3rd. Rate hikes began in March and...

October 10, 2022 The Federal Reserve raised rates by ¾% at their meeting on September 21, as expected. They are aggressively trying to tame inflation but are not getting the results that they are hoping for. This week there will be two important economic reports which...